Latest News

Price quoting top of mind: REIV

The REIV is embarking on a comprehensive consultation process with members in a bid to address underquoting, CEO Enzo Raimondo said today. Mr Raimondo said the Institute will gain valuable input from members on a suitable outcome which will drive industry-wide change and best serve the interests of consumers. Industry input would be received via a member-wide, online survey and through forums in key regional centres in the next fortnight.“We are committed to ensuring this issue, which is clearly impacting on members of the public, is addressed in a timely and effective manner,” he said.

Mr Raimondo said poor price quoting is a symptom of a broader, more important issue – the educational qualifications required to practice as an agent in Victoria.“We currently have a situation in this state where a Certificate III is all that is required to sell or manage real estate.“This is the same level as that required to work in hospitality – as a waiter or barista,” he said. He added that there are also some registered training organisations (RTO’s) which are offering a full licensed course (Certificate IV) in just five days.“These fast-tracked courses are clearly impacting on the industry, and creating poorly trained, inadequately qualified real estate agents,” he said.“The agents receiving this training are a significant threat to consumers,” he said. Mr Raimondo said that the Institute would continue to press for the introduction of higher educational qualifications.

AMP Capital chief economist Shane Oliver said real estate agents could start to see the effect of greater regulation from Beijing, which could curb the flow of capital into Australian property markets.“If you’re a real estate agent in an area where there has been strong Chinese demand, then there is a risk that your business could slow over the next 12 months or so,” Mr Oliver said.“If there’s less Chinese demand for Australian property, that means a weaker property market, which in turn might have a negative impact on Australia-based buyers,” he added.“It depends what the buyer is doing. If they are a property investor, it’s probably more of a negative than a positive. If you’re someone trying to get into the property market for the first time, like a first home buyer, then it’s probably a positive.”Mr Oliver noted that for first home buyers, a weaker property market could improve affordability.While some reports in the mainstream media have speculated about whether China’s weakening currency will have a negative impact on the Australian property market, others have suggested the dwindling yuan might result in China increasing its foreign investment. “On the one hand, as the value of the Chinese currency declines, it icreases the motivation to invest overseas, for example in Australian property, and so that’s actually a positive impact,” Mr Oliver said.“On the flip side, if in response to the declining Chinese currency, the Chinese authorities step up restrictions on capital outflows, which anecdotally it appears that they have done, then that actually will restrict the flow of money coming into the Australian property market.”

Home values increased by 0.9% in January however they were lower over the past three months

Combined capital city home values increased by 0.9% in January with values rising in Sydney, Melbourne, Hobart and Canberra, they were unchanged in Adelaide and fell elsewhere

Home values were -0.6% lower over the three months to January 2016 with Brisbane, Perth, Hobart and Canberra recording increases

Over the past 12 months, combined capital city home values have increased by 7.4% however, only Sydney (10.5%) and Melbourne (11.0%) have recorded significant growth with moderate increases in Brisbane (2.8%), Adelaide (1.1%), Hobart (2.3%) and Canberra (6.0%) while values in Perth (-4.1%) and Darwin (-2.5%) continue to trend lower

House sales have levelled while unit transactions are trending lower

Over the 12 months to November 2015 there were 357,192 houses and 137,373 units sold nationally

House sales are 2.1% higher over the year while unit sales are -7.3% lower

It is important to note, the large volume of off-the-plan sales currently means there is a high likelihood unit sales volumes will be revised higher over the coming years

Rental rates continue to increase at their slowest annual pace on record

Capital city rental rates have recorded no change over the past year which is their slowest annual rate of growth on record

With record low rental growth and strong value growth rental yields have also fallen and sit at 3.5% which is also a record low

Selling time of homes is seeing a seasonal spike while discounting is also increasing slightly

The typical capital city home is currently selling after 41 days on the market compared to 39 days a year ago

The average level of discount is recorded at -5.9% compared to -5.7% a year ago

Auction clearance rates are trending lower after reaching 80% earlier in 2015 and were sitting at around 60% at the end of last year

Listing volumes are starting to rise from their seasonal slumber and are higher than a year ago

Over the past 28 days there were 45,333 new homes listed for sale which is 22.8% higher than a year ago

Over the same timeframe there were 243,218 total homes listed for sale which is 4.6% higher than a year ago

Economic data remains mixed

New lending to investors has eased sharply over recent months with new lending to owner occupiers now the biggest source of mortgage demand

Total housing credit is rising however, investment credit growth continues to slow and is now well below APRAs 10% threshold for annual growth

The rate of population growth at a national level has continued to slow

Dwelling approvals remain very high although they are slightly below their record high. Over the past year there has been almost 234,000 dwelling approvals

Consumer sentiment eased slightly in January with respondents now slightly more pessimistic than optimistic

The unemployment rate eased to 5.8% in January which was its lowest level in two years

Official interest rates remained on hold in February with the market anticipating a 25 basis point cut to official interest rates by September this year.